Lloyds share price: what’s the outlook for 2020?
The UK banking environment is still mired by a myriad of headwinds, but analysts from Morgan Stanley remain optimistic about Lloyds share price 2020.
UK bank stocks have seen significant volatility over the last 12 months, with the market reacting to rising trade tensions, a slowdown in the global economy and of course Brexit.
Lloyds saw its share price fall to 48p a share in August only to climb some 20% since then to trade at 58p a share as of 13:05 GMT on Tuesday.
The stock owes its late flurry in 2019 to the Conservative Party securing a decisive victory in the UK general election, ensuring Brexit will be delivered and bringing an end to three years of uncertainty over how, when and even if the UK will leave the EU.
Looking to trade Lloyds and other UK bank stocks? Open a live or demo account with IG.
Expect more volatility in 2020 for UK bank stocks
Lloyds and its UK peers will likely see more stock market volatility in 2020, with the Brexit process yet to be concluded and likely to take another 12 months to complete.
In 2020, Lloyds will also have to contend with many of the same challenges that plagued it and its rivals last year, with low interest rates and a highly competitive mortgage market likely to hinder its performance.
Morgan Stanley optimistic about Lloyds share price outlook
Despite the challenges Lloyds faces this year, analysts from Morgan Stanley remain upbeat about the stock, with the US-based investment bank reiterating its ‘overweight’ rating and issuing a 75p price target in January.
Based on Lloyds trading at 58p a share, analysts at Morgan Stanley believe the stock has a potential upside of 29.3%.
You can go long or short Lloyds with IG using derivatives like CFDs.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.